Summary
The Serious Fraud Office (SFO) in the UK did not investigate a £170 million diamond scam despite a report from a whistleblower nearly a year before the business, Vashi, collapsed. Investors had been misled into believing their investments were secure, but the diamond stock meant to back it was sold for much less. The company's former chief technology officer reported these concerns, but the SFO closed the complaint quickly and did not act.
Key Facts
- The Serious Fraud Office decided not to look into a £170 million diamond scam despite a whistleblower's report.
- Vashi Dominguez's diamond business, "Vashi," used investor money improperly before going bankrupt.
- A diamond stock worth £157 million on paper sold for only £158,000 after the collapse.
- The whistleblower, Vashi's former chief technology officer, alerted the SFO in May 2022.
- The SFO closed his complaint the day after receiving it, saying it did not meet their criteria.
- The company continued to raise money under false pretenses, accruing £170 million in debts by April 2023.
- Vashi Dominguez left the UK for Dubai on the day the company went under and has since been unreachable.
- John Ames, the whistleblower, presented documents that showed the business inflated sales figures to potential investors.
